You can see the clear rising wedge pattern that is forming here within the two red trend lines that follows a significant down trend. This type of set up generally tends to hold a bias in favor of the preceding trend which of course is bearish in this case. So, on a break-out of this pattern we can expect to see support levels broken and potentially new lows for this pair. A very good entry will be at the 50% retracement of the down trend (about 1.5900) which has proven to be support turned resistance once before. IF this level is tested again there will be many double top traders looking to get short for an optimal entry with a huge reward to risk ratio. You should expect to set initial targets at previous support of around 1.5500.

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